srinivas (purchase) (82 Points)
17 August 2016sir
i am paying an income tax of almost one lac .would like to know whether i can get 100% rebate/exemption if i donate the same amount which i will be paying as incometax.if yes pl do let me know the organsiations to whom if i donate i get 100 % tax exemption.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(161276 Points)
Replied 17 August 2016
I think, you have little misconception regarding 100% deduction u/s. 80G and income tax payable.
Its not that by donating in amount u/s. 80G will reduce your total tax liability, but partially to the extent over the income to be deducted as donation.
For example :
your tax liability is 1 lakh and suppose you are under 30% slab. (simple example without cess etc.)
By donating 1 lakh under 80G(with 100% deduction organizations), your tax liability will reduced by 30000 and net tax payable will be 70K
Udgam Koomar
(Tax Technologist)
(1949 Points)
Replied 17 August 2016
Your tax liability is a graded percentage of the total income whereas the 80G donation deduction you will get is from the total income.
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